Mining giants Rio Tinto and Anglo American are planning to sell their entire stakes in Palabora Mining Company, a South Africa-based copper miner that is currently worth around $975 million.
"Rio Tinto is no longer the natural owner of Palabora due to the limited opportunity to significantly expand copper mining," the London-based miner said in a statement.
"We will continue engaging with employees, the South African government and other stakeholders as the sale process develops and to ensure a smooth transition to a new owner."
"While studies are under way for a potential extension to the copper mine's life from 2016 to 2030, the operation is no longer of a sufficient scale to suit Anglo American's investment strategy," said diversified miner, Anglo American.
Rio Tinto, the world's second-largest mining company holds 57.7-per cent stake in Palabora, while Anglo American owns 16.8 per cent and the remaining 25.5 per cent with the public. Their combined stake is worth around $730 million based on the average closing price of Palabora stock in Johannesburg last week.
Palabora accounted for 8 per cent of Rio Tinto's mined copper production in the first half of 2011, Liberum Capital said.